Old Mutual to list rather than sell as it breaks up
The listings will involve a demerger for the benefit of existing shareholders, with the possibility of an initial public offering for Old Mutual Wealth
Anglo-South African financial services group Old Mutual aims to list two divisions rather than sell them as it pursues a plan to split into four parts by the end of next year. Old Mutual, which said last year it was breaking up because regulatory change made its disparate businesses too complex to run, posted a 37% rise in first-half operating profit on Friday to £969-million (R16.9-billion), helped by sterling weakness and a strong performance in Old Mutual Wealth. After starting life as an insurance company in Cape Town in 1845, Old Mutual has branched out into other parts of Africa, Britain and the US , and into banking and funds. But within a few months of joining as CEO last year, Bruce Hemphill announced the break-up, which will leave him without a job but may entitle him to a maximum bonus of 1000% if he can deliver it successfully. Hemphill's plans led to speculation of a sale of Old Mutual Wealth, its fund management arm, but the CEO said there were no offers for the firm's...
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